How to create value for the customer and stand out from the competition. Customer value - creating and differentiating customer value Ways to add value to customers

Many have heard the phrase - "We do not sell drills, but holes in the walls." So it is - people need goods and services not by themselves, but to satisfy a certain need. The extent to which a product satisfies a customer's need is called customer value.

Value - relative indicator. Consumers compare competitors' offerings and choose the one that satisfies the need in the best way and at the best price.

If you express customer value by a formula, it will look like this:

Customer Value = Product Benefits - Costs

Benefits include: product characteristics - quality, number of functions, reliability, service life, appearance; warranty terms, service quality, delivery terms, company image.

Costs are not only the cost of the product, but also the time spent, the risks, the emotional costs.

That is, the more benefits or lower costs, the higher the value of the product for the customer.

Why Focus on Creating Value for the Customer

Customer-centric companies are 60% more profitable, study says consulting company Deloitte and Touche. Many factors influence profitability. Here are some of them.

To create products that better meet customer needs

People buy solutions to their problems, not a set of features and functions. Understanding what is valuable to customers helps to create products that provide the highest value with the minimum set of features. This saves company resources, plus such products are easier to promote and sell.

Win customer loyalty

Greater value leads to greater purchase satisfaction. And a satisfied customer.

For example, there are two companies that install good plastic windows. Employees of the first company install windows and leave, and the second company cleans up construction waste. The latter create additional value for the client, relieving him of inconvenience. So this client not only becomes loyal himself, but also brings others.

win the competition

Companies that compete on price often lose out. Cost is definitely one of the factors for the client. But many people are willing to pay more when they see the value and feel the money is worth it.

How to create value for the customer

Creating value is an ongoing process as customers and their needs change. There are several steps in this process.

Step 1. Understand what constitutes value for the target audience

You need to constantly collect data to understand: what is important for customers and what opportunities you have to help with this.

There are many ways to determine value:

• ask questions to clients through managers and record data in CRM;
• analyze records of conversations between salespeople and customers;
• conduct surveys -, on the site;
• organize focus groups;
• communicate with clients at exhibitions, seminars, after webinars.

Step 2. Study the offers of competitors

Above we said that the value of a product is evaluated in relation to competitors' products. Therefore, the second step in developing customer value is to evaluate competitors' offerings. The assessment is carried out according to the parameters that were found out from the clients.

Step 3: Understand what your value proposition is

Find out what value your product or service gives to customers and what it costs them in terms of price and additional costs of ownership and service. For example, how much time should be spent buying or using a product.

Step 4. Identify the segments for which you can create the most value compared to your competitors

Different groups of buyers will have different perceptions of the value of a product in relation to competitors. For example, for one group, geographic proximity matters, for another, the property of the product.

Step 5. Set a price that works for both parties

The value of a product for the consumer can be many times greater than its cost. By pricing based on value, a company not only increases profits. In some cases, it makes the product more desirable for the customer.

Probably, each of us once said about a product: “Looks good, but suspiciously cheap.” This happens when price and value differ in the eyes of the customer. Therefore, it is important to set a price, taking into account how much customers are willing to pay for it.

How to increase the value of the product for the client

Offer the best quality

The product is the basis of value for the consumer. All other factors play a role only if the customer is satisfied with the product. This does not necessarily mean major improvements. Sometimes it's enough to do a little better than the competition. Or just do well. For example, on the website of the Dodo Pizza chain, they tell how they provide the main value of pizza - taste. Their main technique is that they “bother”, that is, they try:

This is especially important if you are selling technical products or a product that needs after-sales service. For example, when choosing CRM systems one of the main factors is the responsiveness of the support team during the trial period.

If the company manages to solve the user's problem clearly and quickly, he becomes a loyal customer and recommends the company to others:

Increase delivery speed

One way to offer more value than the competition is to guarantee accurate or better fast delivery goods or services. For example, the technique “If we don’t deliver on time, the goods are free” is well known. There is such a condition, for example, on the Dodo Pizza website:

Offer an additional service or product that solves the user's problem

An additional service that makes life easier for the user will help increase the value. For example, during the pre-holiday period, companies offer gift wrapping for purchases. Even though it won't be free, many customers will appreciate the reminder.

Pack the goods nicely

Impressions from a gift in craft paper and in a plastic bag will be very different. The same goes for product packaging. Beautiful, quality packaging can add value to a product without changing the product itself.

Packaging is needed not only for physical products, but also for electronic ones. Here, for example, is how a gift is sent at the MIF publishing house:

Loyalty programs for regular customers

The opportunity to save increases the value of goods and services for regular customers. For example, for parents of young children who buy children's products almost every day, it will be an advantage to receive bonuses and discounts.

Useful content that solves the user's problem

Remember, we said above that product selection effort is a cost that reduces value. Useful content helps in choosing a product and reduces stress in the selection process - training mailings, webinars, step-by-step instructions.

For example, Invisible does not just sell wine. It solves the problem of choice, as it is really difficult to find a good wine among many brands:

Busfor warns against the tricks of scammers:

Offer more than the buyer expects

Product value is enhanced by unexpected nice bonuses. It can be samples of another product, a compliment from the chef in a restaurant, eBook when buying paper.

How to Increase Perceived Value with Marketing Techniques

There are psychological tricks that can be used to make a product more desirable for customers. Here are some of them.

Special discounts for subscribers or club members only

One way to make a product more valuable is to create exclusivity. For example, Lamoda often announces closed sales. subscribers only:

Limited choice and urgency

What can slip away becomes more valuable to us. This feature of behavior is often used in . For example, in the mailing list, Maria Solodar emphasizes that the last places are left on the course. A person thinks: “If almost all the places have already been sold out, then good course must be taken":

social proof

The desire to be on a par with your friends and your circle of acquaintances is one of the human needs. Therefore, social proof is often used as a tactical tool in marketing. Reviews, reviews, success stories increase the value of the trade offer for the consumer.

Summarize

The concept of customer value makes it possible to look differently at the development of a product, service, additional services. Of course, the main ones are quality, service, delivery of the product.

But you can add value in another way - for example, by reducing the time spent on buying. Psychological tricks help to increase the perceived value and increase the conversion on the site, landing page, in the mailing list.

One of the most effective methods to increase value in online business is to create useful content for clients: training courses, webinars, master classes.

Sign up to deliver useful content via email newsletters, announce webinars and new blog articles with using the web push notifications and mailings in Facebook messenger!

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From this article you will learn:

• What is the value of the product or service to the customer?
• What is the value of a customer for a company
• How to determine customer value
• How to increase the value of the company and its products in the eyes of the client

In relations between sellers and buyers, the main thing is a certain mutual benefit that their interaction should bring. How likely and significant this benefit is depends largely on the value of the client. Therefore, one of the activities of companies is the assessment of the importance of the client in quantitative terms.

Customer Value in Economic Theory: A Brief Historical Background

In economics, one of the key concepts has always been the concept of consumer value, which is determined by how the product satisfies the corresponding need. At the same time, the willingness of buyers to pay one price or another for a product whose quantity is limited is expressed in its exchange value. In the future, this approach only strengthened, and now customer value is understood as the ratio of the benefits that a product brings to a person to the price that must be paid for it.

However, it is wrong to consider value from this point of view when it comes to customer value. Although in commodity-money relations the actor is a company or organization, it is impossible to single out a specific, single motive for its activities. Every company has individual people and groups whose interests may differ widely. This means that these people and groups will evaluate the value of each client differently. It turns out that it is impossible to determine exactly what value this or that buyer has for the company: representatives of the organization will judge its usefulness from their own point of view.

However, such an assessment, despite its subjectivity, cannot be considered unfounded. Each employee will have their own indicators of customer value, objectively justified by the goal they are striving for.

And yet, the only way to objectively determine the value of a customer to an organization is through external audits. This allows you to compare individual indicators of the value of the buyer and eventually come to a reliable result.

Customer value and its main components

Within the framework of marketing theory, both sellers and customers have the opportunity to evaluate both themselves and the other side of the interaction. The main criterion in this case is the result of cooperation, to which the evaluator strives. These results are chosen by people on their own, or in the process of managing an enterprise by making certain decisions.

For the successful operation of organizations in the market, it is important to focus on the norms and values ​​of the client. Customers notice that in their work the seller is guided by their needs and desires, and such behavior has a certain value for them.

It is obvious that of all firms operating in one area, the buyer tries to choose the one with which relations will be most beneficial for him. What exactly the client understands as a benefit depends on the requirements that he makes to the purchased product or service, as well as on the expected costs. The purchase decision is based on comparing the value of the service for the client with the price that must be paid for it.

We must not forget the existence transaction costs, which allow you to evaluate separately the benefits of the goods and the benefits of the transaction. The value of a product is determined by its ability to satisfy human needs throughout the entire period of use. Also, when determining the value of a product, one can take into account the secondary benefit that takes place if, after the purchase, the organization provides additional services to the client.

If we talk about the benefits of the transaction, not only economic, but also psychological and social benefits that can be obtained from establishing relationships with the seller play an important role here.

ABOUT psychological benefit we can speak in situations where the quality of the goods meets the customer's expectations or even exceeds them. This becomes one of the main reasons why a person comes to the same seller again. Repeat business increases customer satisfaction and also helps build trust with the company. This is important because when they first meet the organization, customers have no reason to trust it.

Economic benefit refers to various aspects of interaction related primarily to money (more low cost goods, discounts, etc.). However, the economic benefit can be expressed not only in monetary form: it has several other important components, in particular, time and information advantages. In addition, we must not forget that often in the process of cooperation, the client shares with the seller knowledge related to the product or its production. As a result, it becomes possible to create a product with specified characteristics that best meets the needs of a particular person. It should be noted that in this case the value of the product for the client increases. Also, interaction with the seller on an ongoing basis makes it possible to simplify and speed up the process of making a purchase decision and the process of making a transaction.

The value of products and services to customers can be backed by social benefits. This refers to the situation when the seller actively interacts with the buyer, causing him a sense of self-worth. For many people, the feeling of being recognized and appreciated is an important factor in matters of economic interaction.

Salespeople strive to meet the needs of customers and bring them value so that they invest their money in their relationship. We are talking, first of all, about the price of the goods that the customer pays when buying. However, in addition to the cost of the goods themselves, there may be additional costs that accompany the conclusion of the transaction. Another name for these costs is transaction costs. This can include several main types of costs associated with: finding a seller, establishing a certain relationship with him, business negotiations making decisions on the purchase of goods, concluding contracts, as well as control over the correctness of the transaction process.

The level of transaction costs varies at different stages of cooperation and depending on its duration. Therefore, it is not always possible to unambiguously identify specific cost items within these costs.

From the foregoing, we can conclude that for customers, relationships with sellers are associated equally with both benefits and costs. And understandable desire of the buyer to such a relationship in which the value of the purchased goods and services would be estimated higher than their real value. Otherwise, if the costs seem excessive given the utility of the product, the value of the seller can be said to be negative.

Customer value in marketing and its role in building a business

Resellers have limited resources, so they seek to connect with the most valuable customers first, who can provide them with the most profit. For this, within marketing activities measures are taken to determine the value of customers and stimulate demand from the most significant ones. In relationship marketing, the value of a customer is one of the most important categories, because it allows you to identify a group of buyers with the greatest investment attractiveness and, based on this data, plan further activities.

When working with clients, the value of each of them plays an important role. Sellers are interested in their investment in customer relationships, so it is important for them to understand how valuable one or another of them is.

Relationships with buyers, in addition to the obvious benefits, can also bring sellers losses if customers stop buying from them and give preference to competitors. When this happens, the company loses one of the channels for the sale of goods and loses feedback, that is, important information about the consumer properties of its products, which can become a serious obstacle to further development firms. This suggests that the category of customer value determines the importance of the buyer not only at a particular moment, but also in the future.

This means that within entrepreneurial activity two categories coexist: customer value and customer value. In order for a business to develop successfully, it is necessary, firstly, to know the needs of customers and find ways to satisfy them, and secondly, to be able to evaluate and correctly use customer value in planning. These two goals seem to be key for entrepreneurs and should be considered together. The best result can be achieved by coordinating these goals with each other and with the specifics of the company's activities. To do this, the salesperson must establish his goals and determine the results he is striving for, as well as find out the expectations of customers regarding their interaction.

Most often, as the results associated with the value of the relationship with the seller for the buyer, put forward:

• purchase of a product whose quality meets or exceeds the stated requirements;
• formation of stable relationships based on trust;
• work on creating a positive image of the company.

Among the priorities of any company is the formation of prerequisites for effective relationships with customers. Such prerequisites can be brand awareness and a good image, high quality of the goods sold and services provided, competitiveness of products, and, of course, interaction with customers in a positive way. All this contributes to the fact that customers whose needs have been satisfied return to the seller. This is how regular customers appear, which are of particular value to companies due to the large volume of purchases made. The value of a customer is also related to the fact that other potential buyers can get acquainted with his positive experience (for example, through reviews), which may influence their decision.

Also, the client himself, quite satisfied with the previous experience of relations with the company, will be more willing to purchase other goods and novelties from it - this is called the value of prospective sales. As a result, we see a direct connection between two phenomena: providing a high consumer value of the product and the formation of high customer value.

However, in real life, this dependence does not always take place. Sometimes the consumer continues to apply to the company, despite the fact that his expectations are not fully met. Repeat purchases are possible even when the client negatively evaluates the product and the relationship with the company as a whole. Usually this happens in narrow areas, where it is quite difficult to find an alternative to a particular product and manufacturer. Also, sellers can deliberately create barriers that prevent customers from simply leaving for competitors. In some cases, there are no objective obstacles, but the buyer still continues to apply to the same company simply because he does not want to change the usual course of things. And this is only part of the factors that influence the formation of customer value.

And yet relationship marketing has as its main goal providing a high level of customer satisfaction, which is the main reason for increasing their value. To achieve this, the company must consistently sell quality products and services, seeking to understand and fulfill the desires of consumers. In this case, clients will willingly enter into transactions with this firm, which will provide the investments necessary for the business.

4 ways to create value for the customer

Create value

To create a truly useful product, you need to answer questions about the client's value system:

• What problem does he want to solve with your product?
• What is the result of the relationship he seeks?
• What problems does he need to deal with?

Knowing the basic information, you can work effectively to create customer value. You must clearly understand what tasks your client faces, what your actions will please him or repel, what risks he wants to avoid when making a transaction.

Based on this data, a product is developed that will best help in solving the client's problems and relieve him of the discomfort associated with an unmet need.

Evaluate not competitors, but customer needs

Typically, marketers consider only companies that produce similar products as competitors. As a result, most firms strive to maintain and increase their own share in a particular market and direct all their efforts to combat direct competitors. Meanwhile, in reality, the competitive field is not limited to competitors of the first level. The most serious confrontation occurs at the second level, between companies that produce different goods but satisfy the same need.

For example, corn flakes and instant cereals compete with each other, as consumers use both as a quick breakfast. But we must not forget that for breakfast you can also eat a sandwich, scrambled eggs or yogurt - these will be the competitors of the second level.

If we talk about the third level of competition, here are companies that focus on other needs. Often this level is not considered at all. And in vain, because the rivalry here is very serious and large-scale.

Therefore, the marketer must know exactly what values ​​for the client are the main ones in this moment what needs are most relevant and how they change. This is the only way to keep customers and ensure the possibility of the existence of the business as such.

How to ensure the highest value of the product? This requires innovation to make the product meet the customer's need faster, cheaper and/or easier than before.

What is the difference between innovation and improvement? Innovation refers to large-scale, global changes that customers cannot fail to notice. Improvements, in turn, are usually minor, and the costs of implementing them are disproportionately greater than the benefits that the client receives. For example, an improvement can be called a reduction in the waiting time for an operator's response by a few seconds. Such changes are necessary to stay afloat in competition, but this is not something that can really surprise customers. This requires innovation, thanks to which the product acquires greater utility, which maintains consumer interest.

There are several main innovative schemes:

• The product is designed to solve the same problem, but works much more efficiently.

As an example, consider 3G technology. Even before its advent, people could access the Internet, but 3G made access more stable and faster.

• The product acquires new features compared to earlier counterparts. For example, a smartphone, as a more modern version of a phone, in addition to calling and sending sms, can perform many other tasks: you can use it to take photos and videos, surf the Internet, play games, pay for purchases, and much more.
• The product gives "non-consumers" the opportunity to perform those tasks that were previously available only to a narrow circle of customers (it can be not only people).

How does this happen? Typically, such innovations are associated with the removal of habitual restrictions. Not so long ago, only specially trained people who devoted their whole lives to this could fly into space. Now it is possible to send ordinary people into space, the so-called space tourists. Another example is a portable glucometer. This invention has made life easier for people who need to control their blood sugar levels. Now they do not need to constantly go to the clinic and take tests, because the result can be found at home in just a minute.

• The product is intended for new customers and performs new tasks.

A prime example is modern software and applications for smartphones.

Create new opportunities and remove restrictions

Accordingly, there are three opportunities to create new value for the client:

• a result that does not fully satisfy the client;
• the presence of tasks that the consumer cannot perform;
• market restrictions.

Often, the removal of restrictions allows you to make a real revolution in the industry. So, already familiar to us smartphones with good cameras, along with mobile photo processing programs, allowed everyone to do high quality photos. Another example is the battery-powered refrigerator, a unique product that can be used when there is no electricity.

Also, innovation can be related to the quality of service delivery. For example, Metro Bank, opened in 2010, won great consumer love at a difficult time for financial institutions time. It has a very loud motto: "A bank that you will finally love." And, most importantly, the bank lives up to the expectations of its customers. An additional value in his work was the opportunity to use the services at any convenient time. Metro Bank closes only 3 days a year, and the rest of the time it is open from 8:00 to 20:00. This is a significant advantage, given the inconvenient schedule of most banks.

In addition to practical value, the new bank also created emotional value. Anyone who has ever been to a bank will remember the pens tied to the counter. At Metro Bank, handles are not tied and even emphasize this fact in advertising slogans.

Another creative decision of the creators of Metro Bank is the permission to enter the premises of the bank with dogs. This fact is important, because in London, where it opened, there are really a lot of dog breeders. You can list for a long time what values ​​were created for the client in this institution: a convenient online bank, drive-thru branches, etc.

What other possibilities can be used? For example, if there is an oversaturation of the market, you can play with the functionality of the product: remove features that are not needed certain group clients and add new ones.

When there are really a lot of proposals, you need to look for ways to perform the same task at a lower cost. In America, for a long time the leader of the film and game rental market was the Blockbuster store, interaction with which was not easy: there was a minimum rental period for customers and a complex loyalty system. The company needed to constantly buy discs with new products, since they were in the greatest demand. The payback period was high (6-8 views).

It's amazing how easily the small company Redbox coped with such a giant, the creators of which approached the task outside the box. They did not rent large areas, hire employees or install complicated rules. Redbox simply put convenient terminals with disks near large supermarkets, in places with high traffic. The film could be rented for a period of one day.

Blockbuster tried to copy the idea of ​​competitors and install similar terminals, only changing their design, but the initiative did not bring success. In addition, Netflix has done even more to simplify "oversaturated" markets and remove restrictions.

Develop design thinking

Customer value can create a breakthrough product. Carnegie Mellon University professor Jonathan Cagan introduced the definition that a breakthrough product is different high level design and technology. The importance of such a product for the development of the company is that it retains a high consumer value for a long time.

When creating a breakthrough product, you need the so-called design thinking - a method that allows you to find in the mass of ordinary things creative ideas for the production of goods and business.

In order for a breakthrough product to be truly in demand, manufacturers must focus on customers, put themselves in their place. Understanding the needs and desires of the audience, the company can offer a product that will satisfy them in the best possible way. Accordingly, the demand for such a product will be high, which will contribute to the formation of customer value.

How to Create Customer Value with Email Marketing: 7 Key Ways

Serious companies aimed at long-term and productive cooperation with customers are always looking for ways to establish trusting relationships with the audience. And here values ​​​​come to the rescue, not limited only by the quality of goods and services. In addition, the company can offer customers a courteous attitude, a sense of confidence and reliability, positive emotions, which together form the impression of the interaction. There are several methods to help deliver value to customers through email marketing.

Motivational programs

There are three popular types of incentive programs:

• discounts associated with the date and season, or tied to the amount of the purchase;
• Special offers;
• demo access.

The effectiveness of demo access is confirmed by the fact that about 20 percent of customers purchase paid accounts after the trial period.

Loyalty programs

Such programs are one way to thank customers for choosing you. As a thank you, a small bonus is usually offered.

For example, Starbucks has a loyalty program called Starbucks Rewards. Everyone who makes purchases through the application becomes its participants. Points are credited to the client's account, which can later be used for payment.

Share knowledge

Indeed, information is of great value in our time. And companies can enhance their image by sharing their knowledge with customers.

• invitations to online courses;
• invitations to forums on your topic;
• links to useful blog posts;
• different ways and suggestions for using your product.

Service quality

Undoubtedly good service is of great value to the client. This is proved by a survey of consumers conducted by Statista: among the factors that can affect the opinion of buyers about a company, the level of service occupies an honorable third place.

How to showcase your service mailing list? There are several methods:

• Offer to solve the problem.

For example, before the New Year, it will be very relevant to be able to beautifully pack the order. This way you make it easier for your customers: if they want to buy something as a gift, they won’t have to think about holiday packaging.

• Ask for feedback after purchase.

For business, feedback is very important, on the basis of which you can improve your products and create new value for customers. At the same time, the interest on the part of the company is important for consumers in itself. Ask them to evaluate the quality of service, point to possible problems- and you will receive useful information, and customers will appreciate your desire for development.

• Express gratitude and give gifts.

How to show clients that they are valuable to you and that you are looking forward to a long, fruitful cooperation? Give thanks and back up your words of gratitude with nice gifts.

No need to spare money for small gifts for customers - this is your investment in creating customer value. See how Thrive Market does it.

Arrange contests

Running a contest requires sharing the mailing list and social media.

SmileExpo, a company that organizes exhibitions and promotional events, uses the standard scheme for informing about competitions. First, everyone who subscribes to the mailing list receives a letter with the conditions of the contest and information about the prize (a free ticket to the exhibition). The letter contains a link to the Facebook page where the competition takes place.

The subscriber must do the following:

This scheme is applicable in almost all areas of business. Here we can talk about a combination of material value for the client and intangible value associated with receiving positive emotions.

Conduct surveys

As already mentioned, the opinion of customers must be taken into account when planning business activities. But the polls themselves are a means by which you can establish contact with the audience. You can thank buyers for the feedback and help them if you find problems.

Opinion leaders, celebrities and experts are important business figures whose words are valuable to people and can influence their choices. That's why expert opinion is currently one of the most effective techniques for influencing consumers.

How to Calculate Customer Value and Retention Rate

LTV (Lifetime Value, or customer value)

With the help of this indicator, the importance of the client is assessed: it depends on how much money the buyer spends on average to purchase the company's goods over a certain period.

Mobile operators were among the first to calculate LTV. And this is understandable: when cellular became commonplace, and the market was filled with competitors, it became very expensive to attract customers. To optimize this process, it was necessary to find the least profitable channels and build an effective distribution model.

Because of this, many startups cannot develop: much more effort and money is spent on attracting customers than on monetization.

This is the mistake many startups make: they are constantly working on attracting an audience and improving the product, but they forget about the need to build customer value by building relationships with them. As a result, spending on attracting one client does not pay off with the funds that come from him.

Why is it necessary to calculate LTV?

1. You will be able to purposefully move towards success by betting on those channels that bring the most valuable buyers.
2. Information about the effectiveness of various channels will help you correctly allocate the budget based on needs.
3. It will be possible to assess the value of different groups of customers in the long term.
4. You will be able to assess savings points, as well as understand how much more money can be spent on customer acquisition and retention activities (for example, through remarketing, email newsletters, or social media promotion).

There are several formulas for determining customer value, designed to be used in different situations. IN general view the formula looks like this:

LTV = S x C x P x t, Where

S - the size of the average check among all buyers,

C - average number of purchases per month,

P - profitability as a percentage of the check amount,

t - average cooperation time (how many months customers make purchases / number of these customers).

It is worth tracking the dynamics of customer value by comparing the value of this indicator in different periods. You can also see what LTV level your competitors have or study research on your market segment.

High customer value is a sign that he can buy from you more items different kind and participate in its promotion. We can say that working on LTV contributes to the emergence of regular customers who will recommend your company to everyone they know.

For example, visitors to a fitness club during three years$20 per visit per month:

$20 x 12 months x 3 years = $720 in total revenue (or $240 per year).

This formula can be taken as a basis in your research. But you should not be sure that most clients will attend a fitness club for three years. To refine your predictions, try splitting your customers into multiple groups. For example, the following segmentation might take place:

• go to group classes and study individually;
• visit extra classes;
• get vitamins and protein supplements;
• buy sportswear, equipment, drinks.

Analyze this information to determine who leaves the center more often and who visits it for a long time.

By determining the value of customers in each of these groups, you will find the difference between the cost of attracting them and the profit generated. In the future, you will be able to consciously invest in acquiring certain types of customers.

Customer value can be managed in the following ways:

• clearly define your target audience and strive to interact only with it. The stage of the sales funnel “Lead Qualification” helps a lot with this;
• develop a loyalty program that is understandable and useful for regular customers;
• choose sales channels, focusing on your audience;
• encourage consumer action with gifts;
• create free useful content and exchange it for reposts on social networks;
• conduct online training events;
• make useful mailings;
• expand the product matrix;
• try to offer customers more options for similar products in different price categories;
• create a relationship between the income of the company's employees and the value of customers, increasing the percentage received by the manager for long-term cooperation;
• Run "Refer a Friend" promotions.

CLV (Customer Lifetime Value)

This coefficient is used to calculate total amount possible earnings, taking into account the existing client base.

CLV = S x C x P

Unlike the previous formula, there is no element related to the duration of the interaction.

How to increase CLV:

CRR - customer retention rate

First you need to attract customers, and then keep them. Therefore, it is important to control the coefficient illustrating how quickly consumers leave you.

CRR = ((E-N)/S) x 100, Where

E - the number of customers at the end of the period,

N is the number of new customers acquired during this period,

S - the number of customers at the beginning of the period.

Let's say you had 200 customers (S) at the beginning of the quarter. Over a certain period, you lost 20 customers, but acquired 40 new ones (N). The number of customers at the end of the quarter is 220 (E).

Substitute the numbers in the formula:

((220-40)/200) x 100=90.

The result is remarkable: the retention rate is 90 percent.

It is very important to calculate separately for each segment, since the result of calculations for the entire customer base will be misleading.

According to Harvard Business School, a 5 percent increase in CRR increases profits by 25 to 95 percent.

In the infographic below, KISSmetrics shows other methods for determining customer lifetime value. Perhaps these formulas will be useful to you.

Correct and incorrect translations of the word "value"

Using incorrect translation of the word"value "("стоимость" вместо "ценность"), многие !}firms, even describing their strategic objectives, write "to increase the value for investors and buyers." What kind of buyer and investor would like it? Of course, it is not the cost that needs to be increased, but the value.... >>>

Super slim value chain

Modern definition consumer what value

From the customer's point of view, your company exists only to create value for them, to help them achieve results.

IN new rapidly changing economy focus should be on ways to change customer value , including new pricing methods, innovationand emotions. The result of these new forms of exchange is the transfer of power from the producer to the buyer.

The values ​​involved in each seller-buyer exchange have several parameters: economic, informational and emotional. These exchanges are happening faster and faster, and there is no time left to measure them in exact monetary equivalents.. Companies must identify these hidden values ​​and think deeply about their importance to the buyer before making a final price decision. They have a deep meaning. Companies need to think in terms of "offers" that involve merging products and services to make the most of their knowledge and give the customer maximum added value, not just "sell them something."

Business case Ten 3 e-Coach creates unique value for people

Ten3 Business e-Coach creates a unique value for people, which is based on concern for their success. In fact, this care is the basis for the creation and daily improvement of Ten3 Business e-Coach. And the fact that Ten3 mini-courses are now bought in more than 100 countries is its consequence. Among the buyers of Ten3 Mini-courses are not only companies, businessmen and business teachers, but also housewives, doctors, clergy...

What is the uniqueness of the value created by Ten3 Business e-Coach? Chemon is different from the usual information resources and business training?

The point is, we don't teach. We inspire.

We don't tell a person what to do. We help people, and through them companies, discover their inner inexhaustible talents and start continuously creating something new and unique, rather than copying what others are doing. People turn into enterprising creators, becoming not only inexhaustible sources interesting ideas, but also revealing the abilities and energy for their implementation. Below are some spontaneous testimonials from visitors to the Ten3 Business e-Coach websites:

● "I'm reading and I'm starting to get some interesting ideas."– Zachry Helmberger, USA

● "It produces the effect of an exploding bomb!"– Michael Henzler, Germany

● "He inspired me to create a school for leaders."– Peter Chukumba, Zimbabwe

Lots more reviews on English language from grateful customers from all over the world you can read ... >>>

Innovation is Love: Do what you love and love your customers.

And then you will easily and continuously start creating amazing innovations!

If someone tells you that this is not the case, ask him what success he has achieved in the field of innovation. And you will see that there are none. Because a successful innovator would never say that. He knows from his own experience that this is so... >>>

History of success Estee Lauder

Estee Lauder wanted herbrandseen in the hands of those who always have the best, and jars of her cream - the hope of eternal youth - stood in the women in the most prominent place. Estée Lauder walked through the ladies' rooms of elegant homes, hotels and restaurants, trying on samples of her jars for wallpaper and looking for the best combination. So there was a branded bluish green color packaging Estee Lauder ... >>>

History of success Ten3 Business e-Coach and Google

Give the client more than he expects

In this time of rapid and chaotic change, no force in business contributes more to the stability and resilience of a firm thanpartnership with the buyer. Fierce competition forces companies to be more creative and flexible in working with customers to give them exactly what they want and give itvery fast. Buyer partnerships develop your firm's ability to anticipate customer needs before they even know them...>>>

History of success "Journal Factory"

« Magazine Factory» used innovative approach to creating corporate press and partnering with the client, and eventually made the first in world magazine, which not only cost the customer of the project for free, but also created additional customer value for the end user... >>>

Effective Knowledge Management

Knowledge-driven organizations create their sustainable competitive advantage through continuous learning, both individual and collective. In those companies where the knowledge management system is well developed and debugged, the entire organization learns in the process of training employees. The main task of building a system effective use knowledge is to simultaneously increase the customer value created by the business, improve the learning process and optimize the management of organizational change ... >>>

The role of business architects

What distinguishes today's cross-functionally savvy business architects from functional managers is the integral systems approach to business development and management process. As a business architect and a super effective leader, you must have a broad view of the business and be able to put together -synergistically!are key components of corporate success, from functional planning to cross-functional collaboration, from supply chain management to customer value creation... >>>

The Power of the Internet

The Internet provides an opportunity not only for quick and cheap access to millions of potential buyers scattered around the world with the help of Internet marketing, but also allows you to create fundamentally new business models, accelerate all processes of creating and delivering customer value to the end user, and entering the market with samples of innovative products and services, quickly receive feedback from customers and thus improve final products at a speed never seen before.

Benefits of Effective Leadership

Effective leadership helps leaders at all levels to achieve their goals, removes the barriers created by the hierarchy and the restrictions associated with formal leadership position, thus freeing up the potential for productivity growth. Successful leaders understand their audience and customer needs well. They constantly ask themselves the question: “What do customers want?” - and respond to it before deciding how to meet those needs ... >>>

The role of a top manager

Buyer-focused strategy: ... >>>

Business case Ten3 Business e-Coach for consultants

A correct assessment of the customer value created by the firm is essential for effective pricing. Almost 20% of buyers Ten 3 Business e-Coach in the world are consulting firms, because e-Coach gives them the opportunity to quickly raise the level of their services to a higher level by purchasing a full set of Ten 3 slides and mini courses. However, the license only allowed them to show slides, but did not allow them to be reproduced in hard copy. Many consulting firms, mainly from countries where intellectual property rights are effectively protected by law, such as the USA, Canada, England, Holland and Australia, have asked us to give them permission to distribute printed materials to their clients.

The question arose about assigning an effective price for such an extended license. The price should be based on the value of the service to the consumer. But how can this value be determined? Only through experiments with real buyers. We created a package of different licenses, combining the number of copies allowed and the geography of the license in various combinations, and invited consultants to choose what suits them best. Most consultants have opted for a license that, for an additional 20% of the product price, allows them to make 1,000 copies of each Ten 3 mini-courses for their clients within one country. This practical experiment, carried out in cooperation with the customer, allowed us to create a new Ten 3 packages for consultants that they actively began to buy (See full list of Licensed Ten3 Consultants and Coaches in different countries).... >>>

Business case Ten3 Business e-Coach for licensed trainers

Our Ten3 Business e-coach, together with Ten3 Design, helps its licensed coaches around the world to differentiate themselves cheaply and effectively from the competition. In addition to the main product - Ten3 mini-courses in the form of ready-made presentation materials for conducting business trainings, according to which consultants, even in Africa, become very competent and sought-after super-trainers within a week - consultants have an additional opportunity to stand out from the crowd of competitors in front of their clients. As additional handouts, they can use original, inspiring, memorable products and useful products created by Ten3 Design... >>>

Business case Digital River

Online Bazaar Digital River Through the smart creation of a strategic alliance with ePassporte, an advanced electronic financial services company, it was able to both create increased customer value for its customers and cut off that path for a competitor to follow. INleading innovative form customer service through a strategic alliance with ePassporte , Digital River managed to increase both its profits and the customer value of its services and significantly increase its customer base... >>>

Business case Masterfiber Alliance

The motto of the Masterfiber Alliance is: "We help our customers achieve the loyalty of their customers." One of Masterfiber Alliance's production areas is non-slip coatings for entrances and stairs, which the company sells to shops and supermarkets.

How was the marketing proposal for this product born? .. >>>

Business case Organizational structure of firms in Silicon Valley

Decentralization stimulates innovation, the creation of new products and services, but prevents the creation of optimal integrated solutions that the buyer needs. Centralization stimulates the creation of synergistic integrated solutions for the buyer, but negatively affects the creation of innovative products that are components of these integrated solutions. .. >>>

History of success Ross Perot

WITH become a billionaire by solving client problems

Ross Perrault became a billionaire by seeing customer problems and finding a way to meet them. While at IBM, Ross Perot saw that many computer buyers were having problems processing data. He suggested that IBM management create an appropriate service. The company executives were not interested in his proposal, and then Ross quit IBM and became a competitive advantage, KORUS Consulting was the first in Russia to introduce CRM technology (Customer Relationship Management. As a result, during the year the company managed to reach a sustainable growth rate of 80-100% per year for all key indicators, open 8 new areas of specialization, create 300 new jobs, attract dozens of new customers and increase the loyalty of existing ones. The key to the company's success was that its management managed to find the necessary balance and linked the attitude towards customers with the goals of the company and each of its employees individually. The corporate identity of KORUS Consulting has become the "3K" formula:

UBC strategy – quick response to meet customer needs. At the heart of the strategy is a process of continuous learning to meet customer needs... >>>

Customer value proposition

The customer value proposition includes a description of the customer's problem, the solution that solves the problem, and the value of that solution from the customer's point of view... >>>

The art and skill of selling

Prepare well for your meeting with a potential buyer. If you are ill-prepared, you will soon lose the feeling of control over the situation, which is an admission of defeat. Study your product and its customer value well, so that you have 100% confidence that you can get out of any situation with honor, no matter what problems arise ... >>>

How to sell a product or service, the value of which for the buyer is obvious to you, but is unclear to the potential buyer?

You just need to take the saying "If the mountain does not go to Mohammed, then Mohammed goes to the mountain" not as just a sound, but as a guide to action ... >>>

Continuously Improved Firm (CFI)

A Continuously Improved Firm (CFI) is a firm that continuously improves the customer value it creates through productivity gains achieved through the initiative of all the people in the firm... >>>

Business case Anti-Kaizen in Russian

In advanced Russian companies Practical interest in Kaizen, the Japanese strategy of continuous improvement, is gradually growing. At the same time, the mood for continuous improvement is absent in most firms. This is easy to see in their response to customer complaints and suggestions.

Leading firms in the world view customer complaints and suggestions as a valuable gift to improve the customer value they create and thus become more competitive. In Russian, complaints and suggestions from customers are viewed mainly as a problem, and not as an opportunity to improve something...

Business case

Fidelity Investments

The Fidelity Center for Applied Technology (FCAT) defines innovation as "the process of creating and delivering new value to the customer." The vision of FCAT is to serve as a catalyst for ideas and innovation within the corporation, to help the company's employees and business units imagine and realize the possibilities of cutting-edge technologies and new ideas. FCAT also monitors technology developments worldwide and embeds cutting-edge technologies, including social media, into the corporate environment to drive customer value and business profitability to the next level. .. >>>

Understand that the first component of value is "utility". This means that everything you do for your client must be fit for the client's purposes. In essence, for any good or service you provide to a customer, having utility means that the customer can improve the performance of their assets, or remove some constraint that prevents them from getting more value from their assets.

• If it's a car wash, the car should end up being clean.
• If it is a snow removal service, the customer must be able to walk on the road that you have cleared for them.
• If this cellular telephone, the phone must be able to receive the signal, the customer must be able to dial the number and talk to someone on the other end.
• If we are talking about a computer report, the client must be able to press a button, the report must come out of the printer, and it must be complete and correct.

Know that the next component is "Warranty". This means that the goods or services you deliver to your customer must be usable.

• A car wash, for example, must be open at the time indicated on the sign, and it must be able to cope with the demand for its services, otherwise there will be a queue, customers will get tired of waiting and they will leave.
• The service must be as secure as the client expects, for example, there must be no undue risk to the driver or passengers.
• In the event of a breakdown, the service must be restored within a short time that the customer considers reasonable, otherwise the customer will go looking for another car wash.
• The same principles apply to all other goods and services. They must be as accessible as the client needs, provide a margin of capacity to meet the client's demand, be secure as the client expects, and be continuous if the client requires it.

Strive to identify and overcome customer perception barriers. The easiest way to explain this is to remember the day you bought your last car. Why did you choose it? After all, all cars are the same - four wheels, chassis, engine, gearbox, differential, body, seats, steering wheel, glass, seat belts, etc... Or not? The job of a salesperson who wants to make a sale is to identify those feelings and determine the best way present a service - a car - in such a way as to convince the client that it is vehicle meets all requirements, real and consistent with expectations.

• Some customers buy based on perceptions of reliability, based on personal experiences and/or other people's opinions.
• Some focus on price.
• Some focus on power or cabin comfort.
• Some people need speed, others think that there are never enough airbags in a car.

The customer's perception is what makes or cancels a value-for-money transaction. For example, most people won't pay $100 for a can of stew, right? However, put the person in a situation where they haven't eaten for days and nothing else is available but stew, and the person will be ready to make the deal. The art of selling comes down to finding what the customer thinks is their value and convincing them that what you have to sell will create that value for them.

Remember that strategy and marketing are two different concepts.

• In strategy you take solutions What exactly you will offer that will be of value to potential customers, how this value will be delivered, and how you will convince the client that the value that he wants to have can be obtained from you. In short, it is about defining value propositions.
• Marketing is about how convey strategy and value proposition to the customer in a way that compels them to buy a service or product from you.

Strive for positive returns. Where does money come into play in all this? The client must understand that the total value of the service is higher than its cost and generates a positive return. The return can be tangible (as a positive return on investment) or intangible (as an increase in the reputation of the customer's brand or the goodwill of our client's customers). Keep in mind that sometimes intangible returns can be much more valuable than material ones!

Last week we completed in a company dealing wholesale sales plumbing. In a survey of sales staff, it turned out that the only argument that they use in working with customers is the price. That is, in order to sell their product, they in most cases offer a price lower than that of competitors. Of course, the management of the company is not satisfied with this approach of managers: it leads to a decrease in profits. Sales managers reported that they did not know of other ways to add value to their offer. But during the audit process, it also turned out that this company has a number of competitive advantage that really make her stand out from the rest.

We decided to figure out what is hidden under the statement "". And in parallel, recall proven ways to increase value, which many people know about, but for some reason not everyone uses. First, let's understand the terms.

What is value?

Value is the benefit that the customer pays for by purchasing our product. The more benefits and benefits the client sees, the more high price he is willing to pay, and the more difficult it is for competitors to offer an alternative.

We love the value formula proposed by Neil Rackham, author of the famous SPIN™ selling model:

Value = Benefits - Costs

Thus, value can be increased in two ways: by increasing profitability and by reducing costs or costs. Our Heroes, Merchants plumbing equipment, followed the second path - reduced the cost.

When the buyer understands what benefit he will receive now or in the future from our product, it is easier for him to part with the money. Important point A: in the eyes of the buyer, the benefits of cooperation with us or the purchase of our products must be higher than the amount that he pays. Therefore, the main task of all sellers is to show the product to the client so that the value in his eyes has increased to the maximum.

When the price of a product is less significant than the benefits that the customer receives, the sales manager can only ship the product. There is no work on his part here. There is no benefit for which the company pays him. After all, a sales manager is hired not to sell cheaper, but just to increase the cost!

Strategies to add value in the eyes of the customer

Strategy #1: Increasing Profitability

Profitability, expressed in monetary terms, fundamentally affects the purchase decision. You can increase profitability during the presentation of the product. From the words of the manager it should be clear how much money cooperation with us will bring to the client. On the other hand, a benefit is not always a benefit in terms of money. It can also consist in increasing the level of comfort, status, security. It can also save time and effort. It can also be just a solution to the problem in a short time.

It happens that the benefits of purchasing a product become so attractive to a person or company that they are willing to pay for it even more than they have. Bank lending is based on this principle - if a company receives an income higher than the cost of servicing a loan, then this is a good deal.

Strategy #2: Cost reduction

We refer to the cost of production for the client. A decrease in cost leads to a decrease in the seller's profit. We are not interested in this approach. But costs are not always just cost. It can also be labor costs, time, lost profits.

When there is an opportunity to reduce the cost of the client without lowering the cost of your offer, this must be used, it is. For example, you can deliver the pipes required by the client not in 2 days, like your competitors, but the next day after payment. This means that his plumber team will not be idle for a whole working day, and the client will not pay them a salary for a day of downtime. None of the buyers who in such a situation chooses an offer that is 5,000 rubles cheaper than yours will proudly declare: “But I received additional discount on the pipes!

It is also possible to reduce the costs of the client by payment options that are more beneficial to the client. For example, our price includes VAT or our working conditions imply an advance payment of only 50%. Each element of the service that reduces the cost of the client, whether it is the delivery, installation of products, their repair, maintenance, or training in use, round-the-clock technical support, the client should learn from your proposal.

Why do customers ask for discounts?

When a customer asks for a discount on a product, there can be several reasons for this.

1. The client wants to save money without having other better offers. The client wants to purchase a product or service from the company and get more favorable price for the product he wants. This is certainly a reasonable approach on the part of the client. Even very rich people like Warren Buffett don't neglect the opportunity to take advantage of a discount. In such cases, sales managers believe that by lowering the price they will remove the remaining doubts of the client and sell to him here and now. However, it is possible that in this case they miss important factors influencing the purchase - the presence of need, urgency, money and authority for the client to independently make a purchase decision.
2. The client is reasonably bargaining, having offers from several suppliers in his hands. This situation allows the client to choose best option. Who is more like, who will give the best price, with whom it is more interesting, more convenient, more promising and more prestigious to work with. In this case, the sales manager should not rely only on a low price in his offer - tomorrow the competitor will lower it by one more ruble and the deal will be his. against a competitor and win over the client by the presence of other advantages, except for the price. An example is the situation when he demanded a price reduction, and all managers went for it, thus causing harm to each other. But they wanted to get this client so much that in the competitive struggle they got to the point that selling to this client itself became unprofitable. And the one who failed to sell to this client was in a better position than the manager who made the deal. In such cases, the sales manager must always control management so that his pursuit of a competitor does not damage the company.
3. The client does not have enough money, but there is a need for the product. Here the task of the sales manager is to determine the real financial situation of the client and sell him a suitable product.

10 Ways to Add Value to Your Offer During the Sale

In the case when the increase in the value of the product depends on the sales manager, several standard proven methods can be distinguished.

1. Clearly understand the main pain of the client. If you understand the challenges, risks, and limitations of the customer, then you can influence value by offering good decision these problems. Customers are willing to pay more for a quick solution to problems than for a simple increase in comfort. Behind every need is a customer problem. Think about it and make a list of the 10 most common problems that you can solve with your product.
2. During negotiations, present a product or service in the language of the client's benefit. This means that it is necessary to talk not only about the characteristics and benefits of the product itself, but also about the benefits that the client will receive from using it.

Example: CRM-system stores the entire history of working with clients. It is possible to listen to calls and read letters sent and received from this client. This means that even if the sales manager who worked with this client is fired or simply no longer responsible for this client, you can continue working with the company without missing important details. This, in turn, means that the new steps to work with the client will turn out to be correct, no mistakes will be made and it will be possible to avoid repeated unsuccessful actions that the manager has already taken. On the face of saving time at the beginning of work with the client, and most importantly - the ability to correctly build further work. The result is correct operation is the sale - and the sale is the money that the company will receive through such a convenient tool in the CRM system.

A very effective addition to this method is the voicing in the manager’s own thoughts of just one question: “so what?”. The answer to this question allows you to understand whether you have identified a real benefit for the client or not. What will this characteristic of the product give him? Financial benefits, saving time, effort, increasing the overall level of comfort, security, status, adding positive emotions. By reasoning to specific benefits in one of these categories, you add value. This is what you need to talk about, listing the characteristics or properties of the product.

3. Limit demand. In this method, you need to create a shortage of goods in a specified period of time with a specified price.

For example, indicate that it will be available only until the end of December. For this, promotions, sales, special offers, black Fridays and cyber Mondays are invented. The idea is not to give a discount, but to inform the client that in the future there may not be such a product at this price.

4. Use friends' recommendations and other people reputable for the client - what a person has heard about, what he has already been told and recommended many times, he will buy more willingly than some unknown thing from an unknown company.

Of course, not only the sales manager should take care of this, but also all the company's services, especially. The product must have a certain halo, it must be recognizable, famous for its quality, be approved by society.

Enlist the support of your regular customers, most likely with one of them your new client sign. By calling one of them, he will receive a recommendation that will increase the value of your offer. The influence of the environment always plays a role in making a purchase decision. If buying these products is considered good form, the chances increase. If it's dangerous to work with "these guys," it's unlikely that the deal will go through, no matter how hard the sales manager tries to increase the value of his offer.

5. Make high-quality promotional and marketing materials, website and generally look good. Value is enhanced by how your offer looks. Everything affects. Photos, text, design, polygraphy. The better and more expensive your printed or electronic presentation, topics better opinion customer about you.

This includes the appearance of the sales manager, and where your office is located and what it looks like, what kind of car the director drives. So take care of your appearance and about the appearance of your proposal.

Successful sales managers deliberately bring the client to their office to show that everything is in order, the office is in the center, there is money, you can work with us. And at the same time, they involve the client in the work process, show the product by its face. “This designer will work with you, and we will stamp your cornices on this machine.”

6. Make gifts instead of discounts. The value of the offer can be increased by adding more gifts to it. As a gift, use your own products or additional service that the company is doing. When a client asks for a discount, give him more, but for the same money. Thus, you remain in the same price range, and the client receives a gift. It could be free education, 24/7 technical support, premium service, loyalty card, free shipping, free two weeks of using anything.
7. Unexpected gifts. A separate technique is generally to give small but pleasant gifts to customers. Pens, coffee, sweets, souvenirs and other things useful for the client. This sign of attention is very important for the sale, because it gives the client a sense of duty. In the book The Psychology of Influence by Robert Cialdini, it is noted that the second party, after receiving a gift, in most cases wants to give a return gift. This is called the exchange rule. And sellers take advantage of the fact that the exchange can be unequal. The value of the transaction is much higher than a package of coffee beans or a box of chocolates, but the client, having received such a gift, already feels obligated and wants to thank him with a service for a service or a gift for a gift.
8. Expertise. When a sales manager proves himself to be an expert in a certain area, knows the details and can recommend based on his experience, it is always captivating. When the client sees that the manager is on his side, taking care of his interests, the value increases. An example is the situation in the market, when the saleswoman says: “the potatoes are not very good today, don’t take them, but the tomatoes are excellent.” It seems that she is not just trying to sell her product at any cost, but stands on the side of the client, takes care of him, shows respect for his choice. We trust such a seller, and next time we will come to buy from him again, knowing that he understands the product, has a complete set of information on it and is on our side.
9. Good job and good product. Best of all, the value of a product is increased not by the work of a sales manager, but by the quality of the product or service provided by the company. When a product is really good, useful, convenient, they will definitely find out about it. And they will come for him again. Word of mouth will start working, which stronger than anyone manager presentation. Therefore, it is always necessary to start with a real improvement in product quality. A job you are not ashamed of always sells better and brings in new customers.
10. Faith in the brand. Use what you sell. Believe in your product, be brand loyal. It is very strange to hear from a sales manager that he has plumbing fixtures from another brand at home, and not from the one he has been selling for 10 years now. The higher the trust in the manager, the more opportunities he has to influence the course of the transaction. And when a manager undermines trust by his actions, for example, he does not use what he sells, the value goes down.

Adding value is technology

To add value to your offer, you need to do it right. Bad work is when, by the end of the negotiations, it turns out that the sales manager has only one argument - a low price! It means he didn't do his job properly.

Adding value to the offer, like all other elements of the sale, needs a clear technology. In order to control the quality of work, sales standards should be introduced in the company, which would describe how to increase the value of your particular product. In working with clients, you can use all the obvious and non-obvious ways to add value that I described in this article.

If you are a sales manager, then this will be useful for you. Your sellers should be able to answer 3 questions in detail:

1. Why should a customer buy this particular product or service?
2. Why should a customer buy a product or service from you?
3. Why should a customer buy it now?

It's important to remember Jack Trout's quote: "If your company doesn't have a point of difference, all you have to do is offer a low price." Be different. The choice is always between "be cheaper" or "better". And the client is always on the scales "what I will give" and "what I will receive." A clear vision and position of the manager, who he is and what he works for, together with effective techniques sales increase the value of the offer.

Therefore, when your employees say that they can only sell at a discount, it means that it is time to start improving the quality of sales: develop arguments, put into work, conduct, and implement control over the application of standards.

Yefim Markovetsky, Mikhail Grafsky
Clientbridge